Gold Steadies After Fed Maintains Stance To Keep Interest Rates Lower

Gold Steadies After Fed Maintains Stance To Keep Interest Rates Lower

08 Apr 2021 11:03 AM
 

Gold prices steadied after early falls today, as investors weighed the U.S. Fed's commitment to keep interest rates low against expected higher inflation.

Spot gold was flat at $1,737.89 per ounce by 0937 IST. U.S. gold futures fell 0.1% to $1,739.20 per ounce.

Non-yielding gold tends to fall out of favour when interest rates rise, as it increases the opportunity cost of holding gold.

The world's largest gold-backed exchange-traded fund, holdings slid 0.35 tonne to 1,028.69 tonnes yesterday.

Lending support to gold, the U.S. dollar tracked Treasury yields lower and traded near a more than two-week low versus major peers today.

Among other metals, silver dropped 0.1% to $25.09 per ounce and palladium edged down 0.3% to $2,614.98. Platinum inched up 0.6% to $1,232.99.